Financial Crime World

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Financial Crime Investigation Process in Peru Receives Mixed Reviews

Lima, Peru - A recent assessment of Peru’s financial crime investigation process has yielded a mixed bag of results, with the country receiving high marks in some areas and falling short in others.

Assessment of Peru’s Financial Action Task Force (FATF) Recommendations

The Mutual Evaluation Report 2019, conducted by the FATF, evaluated Peru’s implementation of anti-money laundering and counter-terrorist financing measures. The report assesses countries on their compliance with a set of technical requirements known as the FATF Recommendations.

Areas of Strength

Peru has made significant progress in implementing certain aspects of the FATF Recommendations, such as:

  • National Cooperation and Coordination (R.2): Peru was deemed “compliant,” indicating that it meets all the requirements set by the FATF.
  • Confiscation and Provisional Measures (R.4): Similarly, Peru received a “compliant” rating in this area.

Areas of Improvement

However, the report also highlighted several areas where Peru falls short:

  • Money Laundering Offenses (R.3): The country received a “partially compliant” rating, indicating that it has not fully implemented all the required measures or has significant deficiencies in their implementation.
  • Targeted Financial Sanctions (R.6 and R.7): Peru also received a “partially compliant” rating in this area.
  • Non-Profit Organizations (R.8): The country’s implementation of measures related to non-profit organizations was rated as “partially compliant.”

Areas with Room for Improvement

Peru also received “largely compliant” ratings in several areas, including:

  • Customer Due Diligence (R.10): While Peru has made efforts to implement this measure, it still has some room for improvement.
  • Record Keeping (R.11): The country’s record keeping practices were rated as “largely compliant.”
  • Reliance on Third Parties (R.17): Peru was also rated “largely compliant” in this area.

Challenges and Recommendations

The report noted that Peru’s financial crime investigation process is hindered by a lack of resources and capacity, particularly in the areas of law enforcement and investigative authorities (R.31). The country also struggles with issues related to statistics (R.33) and guidance and feedback (R.34).

In response to the report’s findings, Peruvian officials have pledged to address the identified shortcomings and improve their implementation of anti-money laundering and counter-terrorist financing measures.

Key Findings:

  • Peru was deemed “compliant” in areas related to national cooperation and coordination (R.2) and confiscation and provisional measures (R.4).
  • The country received “partially compliant” ratings in its implementation of measures related to money laundering offenses (R.3), targeted financial sanctions (R.6 and R.7), and non-profit organizations (R.8).
  • Peru was rated “largely compliant” in areas related to customer due diligence (R.10), record keeping (R.11), and reliance on third parties (R.17).

Recommendations:

  • Strengthen Law Enforcement and Investigative Authorities: Peru should strengthen its law enforcement and investigative authorities, including providing them with adequate resources and capacity.
  • Improve Implementation of Measures: The country should improve its implementation of measures related to money laundering offenses, targeted financial sanctions, and non-profit organizations.
  • Address Identified Shortcomings: Peruvian officials should address the identified shortcomings in areas such as statistics and guidance and feedback.